AMP Americas to Haul Milk With Compressed Natural Gas

AMP-Trillium to build seven CNG fueling stations in Texas.

Source: AMP Americas

Continuing to pave the way in transitioning trucking fleets from diesel to compressed natural gas (CNG), AMP Americas announced today that it has signed a deal with Dairy Farmers of America (DFA) and Select Milk Producers, both national dairy cooperatives, to convert a portion of their diesel needs to CNG by working with haulers to convert their fleets to CNG-powered trucks.

Under the agreement, AMP-Trillium, the joint venture between AMP Americas and Trillium CNG, will build seven public fueling stations between October 2013 and early 2014 and lease new CNG trucks that will travel more than 13.2 million miles per year, servicing routes throughout Texas. The stations, which will be built in Waco, Amarillo, Harrold, Sweetwater, Weatherford, Kerrville and Midland, will initially fuel forty new Class-8 Kenworth and Peterbilt CNG sleeper trucks, a number that will double over the course of the agreement.

"It is estimated that the culmination of this deal will displace carbon emissions equal to removing 2,400 cars per year from the road and will save the supply chain $1.50 to $2.00 in fuel savings on every gallon sold," said Nathan Laurell, CEO of AMP Americas. "It lets us build a network of public, fast-fill CNG stations across all of the major Texas corridors that can be used by any fleet running trucks across the state."

"This new network of CNG stations will allow AMP-Trillium to meet the rapidly increasing demand for CNG cars and trucks," said Mary Boettcher, President of Trillium CNG.™ "The low cost, low-carbon emissions, and reliability of CNG has made it the ideal alternative to gasoline and diesel fuels."

The deal structured by AMP Americas features beneficial contract terms for fleets operated by Western Dairy Transport and Reynolds Transport, establishing the two as "first-movers" by operating two of the largest 12-l Liter commercial CNG fleets in the US.

CNG is domestic, abundant and about 40% less expensive than diesel. It reduces dependence on foreign oil and has significant environmental benefits. Because it is the cleanest burning fossil fuel, CNG cars and trucks require less vehicle maintenance and enjoy a longer engine life. Given these benefits, the long-term savings far outweigh the incremental costs associated with converting to CNG.

ABOUT AMP AMERICAS

AMP Americas, LLC, a Chicago-based energy company focused on displacing liquid fuels with CNG, builds and owns CNG fueling stations for long-haul truck fleets and finances leases for CNG trucks. AMP operates the largest US renewable natural-gas plant that produces fuel from cow manure. AMP Americas is a member of the Department of Energy’s National Clean Fleets Partnership tasked to reduce the nation’s dependency on imported oil. For more information, call (312) 300-6700 or visit www.ampamericas.com.

ABOUT TRILLIUM CNG

Trillium CNG, a business unit of Integrys Energy Group (NYSE:TEG), is a leading provider of CNG to fleets, and also offers complete facility design, construction, operation and maintenance services. Our focus is on fueling heavy-duty fleets that require high-performance solutions. For more information, visit www.TrilliumCNG.com.

ABOUT DAIRY FARMERS OF AMERICA

Dairy Farmers of America, Inc. (DFA) is a national dairy marketing cooperative that serves and is owned by more than 13,000 members on more than 8,000 farms in 48 states. DFA also is one of the country’s most diversified manufacturers of dairy products, food components and ingredients, and is a leader in formulating and packaging shelf-stable dairy products. For more information, call 1-888-DFA-MILK (332-6455) or visit www.dfamilk.com.

SELECT MILK PRODUCERS

Select Milk Producers, Inc. was formed in 1994 by a group of large dairy producers with high quality milk and efficient dairy farm operations. The Select common goal is to provide the highest quality product in the market place and do so with the highest level of service. At the same time our objective is to operate our cooperative of 87 family owned dairies in a very efficient manner to achieve the optimum pay price for our membership. Select membership is based in three primary geographic areas: Texas, New Mexico, and the Midwest. All together Select produces and markets over 6 billion pounds of milk annually.